NC Laboratory and Owner Agree to Pay $850K to Resolve Allegations of False Claims

Substance Abuse Treatment Labs, located in Greensboro, and its owner, Paul Fribush, have agreed to pay $850,000 to resolve civil allegations that it violated the False Claims Act by billing North Carolina Medicaid for medically unnecessary urine drug screening tests (UDT), announced Acting US Attorney Randall Galyon. The United States and the State of North Carolina alleged that, between January 2018 and January 2022, Substance Abuse Treatment Labs and Fribush submitted false claims for the highest level of urine drug testing to Medicaid. These claims, which reimbursed providers at the highest dollar amount for urine drug tests, were submitted to Medicaid despite clear signs that the tests were not medically necessary.

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